Tata Steel has been bashed after it announced its plans to shut blast furnaces at its plant in Port Talbot, South Wales, with the loss of more than 3,000 jobs. The company has received backlash from industry experts and unions who claimed that the UK is set to become the “only G20 nation that can’t make its own steel”.
About 2,800 jobs will go over the next 18 months, with a further 300 to be lost. In the proposed strategy, the two high-emission blast furnaces and coke ovens in Port Talbot will undergo a phased closure.
The initial blast furnace is set to shut down around mid-2024, with the remaining heavy-end assets winding down in the latter half of the same year.
The plan encompasses a broader restructuring of various locations and functions throughout the company, including the planned closure of its continuous annealing processing line (CAPL) in March 2025.
Following discussions with unions, Tata has announced its agreement to maintain operations at Port Talbot’s hot strip mill throughout the proposed transition period and beyond.
Tata said in a statement: “Tata Steel today announced it will commence statutory consultation as part of its plan to transform and restructure its UK business. This plan is intended to reverse more than a decade of losses and transition from the legacy blast furnaces to a more sustainable, green steel business.
“The transformation would secure most of Tata Steel UK’s existing product capability and maintain the country’s self-sufficiency in steelmaking, while also reducing Tata Steel UK’s CO2 emissions by five million tonnes per year and overall UK country emissions by about 1.5%.”
Under the plans, Port Talbot’s two high-emission blast furnaces and coke ovens will close in a phased manner, with the first blast furnace closing about mid-2024 and the remaining heavy end assets winding down during the second half of this year.
However, the move has left many up in the arms. British economist and journalist Liam Halligan told GB News: “It does now seem that Britain is going to be the only G20 country without the ability to make steel from scratch.
“This is an incredibly sad day for British industry. It’s an incredibly sad day for British manufacturing, but particularly for the people of Port Talbot in South Wales which for years and years was the flagship making plants of the world.
“The place where many of modern techniques that used to make high-quality steel. This is a story about the clash of coaches in civilisations, an environmental movement that wants to put environmentalism above all.”
A statement by the GMB and Community said: “More than 3,000 jobs and the future of British steelmaking is at stake.
“It is an absolute disgrace that Tata Steel, and the UK Government, appear intent on pursuing the cheapest instead of the best plan for our industry, our steelworkers and our country. It’s unbelievable any Government would give a company £500 million to throw 3,000 workers on the scrapheap, and our Government must re-evaluate its miserly offer to support investment at Tata Steel.
“The German, French and Spanish Governments are all committing billions to secure the future of their strategically important steel industries, and our Government must show similar ambition. It is encouraging that the Labour Party have reaffirmed their commitment to the £3 billion Green Steel Fund, and using it to supporting a just transition at Tata Steel UK.
“Tata must think again, and work with the UK Government and Labour to unlock the investment our industry needs and deserves. Community and GMB do not accept Tata Steel’s rejection of the multi-union plan and confirmation they intend to press forward with their original devastating proposals.
“We will now consult our members on next steps and all options to protect jobs are on the table, including industrial action.”
